According to LMS’ Remortgage Snapshot, the cancellation rate has declined by 8%, while the pipeline has grown by 2% compared to the prior month.
Around 42% of those who remortgaged increased their total loan size, with the average loan increase coming to £19,988.
Approximately 19% cut their total loan size, with the average loan decrease post-remortgage standing at £13,615.
LMS said around 39% saw no change in their total loan size.
On the monthly loan repayment side, 62% increased their monthly remortgage repayments, with average increases estimated at £294.66.
The new-build energy advantage
Sponsored by Halifax Intermediaries
Around 28% cut their monthly remortgage repayments, with the average fall coming to £274.22.
Only 11% saw no change in their monthly repayments.
The majority – 46% – went for a five-year fixed rate, followed by 45% who went for a two-year fixed rate.
Of those surveyed, around 28% said their primary goal when remortgaging was lower monthly payments, while 22% pointed to security over monthly payments and releasing equity on property.
Nearly three-quarters of those who selected a fixed rate said they wanted the security of knowing how much they will be paying and 15% said they were worried about the economic climate and wanted to lock in a fixed rate.
Nick Chadbourne, LMS’ CEO, said: “Q1 has the lowest product expiries of the year, so seeing such buoyant activity through January and February bodes well for the rest of 2025. We have two significant spikes ahead: at the end of Q2 and towards the end of the year, so expect to see pipelines grow from now until June.
“In terms of behaviours, we are still seeing increases in monthly payments, partly due to borrowers increasing their loan sizes but also due to continued rate shock from historically low rates. We are back to equilibrium on product purchasing, with 45% opting for two years and 46% going for five years.
“Borrowers are clearly unconvinced about rate reductions, despite the rest of the market factoring this in.”
